Manpower Planning - Need and Importance
There is no denying the fact that the continual positive development of a business is owing to its effective planning. Making preparations and arrangements on the basis of what is expected to happen and performing tasks in an organized and capable way is one of the important roles of management in that it involves effective planning process. It is through the process of planning as well as designing the organizational structure by assigning an assortment of responsibilities to the employees that business organizations may accomplish their set objectives.
There is no denying the fact that the continual positive development of a business is owing to its effective planning. Making preparations and arrangements on the basis of what is expected to happen and performing tasks in an organized and capable way is one of the important roles of management in that it involves effective planning process. It is through the process of planning as well as designing the organizational structure by assigning an assortment of responsibilities to the employees that business organizations may accomplish their set objectives. The concept that the right person should be employed at the right place and at the right time is vitally important to a business as it includes a wide and comprehensive range of activities in relation to “the management of man” while it entails man power planning, at the same time, being focused on the effective utilization of existing human element as well as fulfilling future needs of manpower in the organizations whenever the situations necessitate. Man power planning is “the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.” Man power planning is indispensable for an organization to perform the activities efficiently as well as in a way that produces desired results.
It should be apparent that the organizational development as well as the success of the business is on account of highly competent people that a business organization keeps. Man power planning is one of the key functions of human resource management that manages to maintain the good will of a business while giving duly importance to the ‘M’ (for Men or human element) than that no other ‘M’ (Machine, Material or Money) is more valuable. It endeavors to the organizational development in totality as well as the success of the business respecting the skills of the employees, their knowledge, experience and talents. It is concerned with effective recruitment and selection process in order that the skilled workers may be made available each and every time that a business requires. Manpower planning is of great significance for various reasons necessitating the process, at the same time, contributing significantly to the achievement of organizational objectives.
Many factors will continue to drive man power planning need in the organizations. It is essential when turnover of labor is to be determined and the situations become inevitable. There are times when the situations give rise to replace the employees who have grown old, who are forced to remain in bed because of illness, weakness, injury, mental disorders or a medical condition involving disturbance to usual functioning of the mind or body. While executing effectively, man power planning process entails analyzing the requirement of present and future vacancies. These situations take place when some employees get retirements, when they are transferred or they are promoted to higher positions. Similarly, it deals with the situations that arise at the time that employees avail their leaves or in case of their absences. In order that the tasks being assigned may be carried out in a way as has been planned or intended, business organizations need personnel possessing necessary qualifications and experience and that is, to all intents and purposes, accomplished through man power planning. In its positive form, it is of great importance to identify the surplus as well as the shortage of the employees so as to move the man power from one area or activity to another in case of the former, whereas latter indicates providing required personnel.
Some of the important tasks concerning the process of manpower planning are man power demand, supply and manpower audit. It involves analyzing total man power requirement and planning accordingly. Subsequently, there is a need of man power supply which is done in both ways, internally and externally. It is needed internally when the employees are transferred or promoted, while the need of external supply arises from the requirement of new workers when a business goes for expansion or changing technology or adopts new methods of production. In addition, the process entails man power audit which is carried out through “Skills inventory”. It encompasses detailed information about each employee. It is through this activity that the overall value of an employee to the organization is determined while it involves analyzing the factors such as, which type of workers need to be hired; whether the remuneration is as good as or slightly better or lesser than others. Adding emphasis on sustaining the skilled workers, man power audit also analyses the factors that interest the employees to leave the current jobs and move elsewhere in order that the necessary measures may be taken leading to the maximum utilization of human resources.
Manpower planning is vital to be in employees’ best interests as well as organizations’. In addition to undertake proper recruitment methods while implementing appropriate selection procedures for the right candidates and preserving the talents of the employees, it focuses on the requirement and the arrangement of training and development programs for the employees who need so as to equip them with their jobs’ requisites and activities. It is focused on the promotion procedures for those who are skilled and can take challenge of doing more advanced tasks than that are being performed currently. It is by means of manpower planning process that the inefficiencies of the employees are observed that necessary training may be provided, while it maintains morale of the employees. The process of manpower planning produces such results that improve productivity; the employees may become more efficient and their performance may be more effective. In this way, they can contribute greatly to the total organizational development and the success of a business that depends upon quantity and quality of human resources.
By: K.A.Fareed (Fareed Siddiqui)
MPhil-Financial Management; MBA-Finance
MIMC-Member of Institute of Management Consultants of India